Professional Documents
Culture Documents
Huma Fawad Hitec, Taxila September 2018 - January 2019
Huma Fawad Hitec, Taxila September 2018 - January 2019
HITEC , TAXILA
SEPTEMBER 2018 – JANUARY 2019
1 1-1
• Macroeconomics is the study of the economy
as a whole, same type of industries, households,
country, geographically, globally etc
1-2
• Economy:
The structure of economic life or economic activity
in a community, a region, a country or group of
countries of the world
1-3
4
Money:
Something accepted as a medium of exchange
Flow:
A variable that measures the amount of something
over an interval of time such as amount of money
you spend of food each week.
Stock:
A variable that measures the amount of something at a
particular point in time, such as the amount of food
in your refrigerator or the amount of money you
have with you right now.
1-4
5
1-5
6
1-6
7
Depression:
A severe reduction in an economy’s total production
accompanied by high unemployment lasting more
than a year
Recession
A period of decline in total output lasting at least six
months and marked by contractions in many sectors
of the economy
Expansion
A phase of economic activity during which there is
an increase in an economy’s total production
1-7
8
1-15
Food & Fuel Crisis (Common Challenges faced by every
economy)
Intensification of War on Terror
Political Instability
Less than satisfactory security environment
Energy Crisis
Economy Remained out of Radar of the Government
Weak governance
public–private sector relations
1-16
Economic growth slowed to an average of 3.0% per annum
over the last five years from an average of 7.0 per annum
during the previous five years
Investment is down to 50 years low at 12.5% of GDP from as
high as 22.5% of GDP only five years ago
Domestic Saving Rate at 5.8% of GDP is the lowest in the
country’s history from an average of 15% of GDP during the
previous five years
1-17
Budget deficit averaged 7.0% of GDP, reaching as high as 8.8% in 2012-13
Public debt more than doubled in 5 years from Rs. 5 trillion in 2007 to Rs. 13
trillion in 2012
Over $20 billion external debt added in 5 years
Foreign Investment has simply collapsed – down from $8.5 billion in 2007 to
just $0.8 billion in 2012
Inflation persisted in double digits for more than 50 months in a row
Pak Rupee has lost 39% of its value
Poverty and Unemployment have increased
Foreign exchange reserves is at $10.0 billion, of which, $4.8 billion is the
SBP’s reserves and $5.2 billion is commercial banks reserves with SBP on
August 30, 2013
Power Sector has received Rs. 1500 billion in subsidy in the last five years
1-18
Pakistan Slipped down to 129 Position in
ranking amongst 144 countries.
Nepal (102nd)
Bhutan (103rd)
Bangladesh(109th)
India (71st )
Turkey (45th )
1-19
05/24/19 20 1-20